Margin taxation for collectors’ items

Margin taxation under Article 24a of the Swiss VAT Act may be used for collectors’ items such as works of art, antiques and similar items where no input VAT was deducted on purchase. VAT is calculated on the positive difference between the selling price and the purchase price rather than on the full selling price.

Collectors’ items include certain works of art and antiques, stamps and other collectibles and, subject to the statutory conditions, motor vehicles first put into circulation more than 30 years before purchase, certain vintage wines and other alcoholic beverages, and items made of precious metals, jewellery, watches and coins that have collector value.

The margin taxation regime does not generally apply to ordinary second-hand movable goods. Subject to the statutory conditions, those goods instead use the fictitious input-tax deduction system.

This calculator calculates VAT on a positive margin equal to the selling price minus the purchase price. If the purchase price exceeds the selling price, Swiss law allows the loss to be offset within the margin taxation regime; this calculator does not calculate that loss offset. For imported collectors’ items, import VAT paid may, subject to the statutory conditions, be added to the purchase price.

When margin taxation is used, VAT must not be shown separately on the invoice. If VAT is shown separately, the tax is due and the margin taxation regime cannot be applied to that transaction.